European equities drifted lower at the open on Monday, with investors uneasy about global growth and bracing for a pivotal earnings update from AI bellwether Nvidia later this week.

At 03:02 ET (08:02 GMT), Germany’s DAX was little changed, France’s CAC 40 slipped 0.1%, and the U.K.’s FTSE 100 fell 0.2%.

Growth concerns cap risk appetite

Sentiment remains fragile after a choppy week that ended with sharp declines across European bourses amid renewed debate over an AI-driven valuation bubble and a cooling global economy. Fresh weekend data showed Japan’s GDP contracted 1.8% annualized in Q3 (-0.4% q/q), pressured by weak private consumption and softer exports, including the drag from higher U.S. tariffs. Recent reads from China also underscored sluggish momentum, while the lengthy U.S. government shutdown is expected to weigh on Q4 activity.

Closer to home, the U.K. economy shrank in September and the eurozone expanded just 0.2% in Q3 versus Q2, reinforcing the narrative of subdued domestic demand.

Nvidia in the spotlight

The week’s marquee event is Nvidia’s fiscal Q3 report after Wednesday’s close—seen as a litmus test for the durability of the AI trade. LSEG’s consensus points to ~53.8% y/y EPS growth, with rising top-line expectations leaving a high bar for the $5T market-cap juggernaut. Caution ticked higher after filings showed Peter Thiel exited a near $100 million stake, adding to nerves around stretched tech multiples after losses through late-October and early-November.

Stock specifics

• Prosus (AMS: PRX): Guided first-half FY26 EPS up as much as 37%, citing margin gains and contributions linked to Tencent.
• L’Oréal (EPA: OR): Took a minority stake in Chinese mass-market skincare brand Lan, its second recent China investment as local labels scale rapidly.

Energy: crude eases as flows resume

Oil edged lower after Friday’s jump. Brent Jan slipped 0.7% to $63.97, WTI Jan -0.7% to $59.51, as Russia’s Novorossiysk port resumed crude loadings, tempering fears of lasting disruption following Ukraine’s strike that briefly halted exports equivalent to ~2% of global supply.

The setup

With macro growth signals soft and tech valuations back under the microscope, European indices may tread water into midweek. A decisive Nvidia print and guidance could recalibrate risk appetite—either validating AI-linked multiples or reinforcing the market’s recent de-risking bias.